EBK HORNGREN'S COST ACCOUNTING
16th Edition
ISBN: 9780134475998
Author: Rajan
Publisher: YUZU
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Textbook Question
Chapter 17, Problem 17.26E
FIFO method, equivalent units. Refer to the information in Exercise 17-24. Suppose the assembly division at Quality Time Pieces, Inc. uses the FIFO method of
Required
Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.
17-24 Weighted-average method, equivalent units. The assembly division of Quality Time Pieces, Inc. uses the weighted-average method of process costing. Consider the following data for the month of May 2017:
a Degree of completion: direct materials. 80%: conversion costs, 35%.
b Degree of completion: direct materials, 80%; conversion costs, 40%.
Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.
Expert Solution & Answer
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Students have asked these similar questions
Fields Company has two manufacturing departments, forming and painting. The company uses the weighted average
method and it reports the following unit data for the Forming department. Units completed in the forming department are
transferred to the painting department.
Beginning work in process inventory
Units started this period
Completed and transferred out
Ending work in process inventory
Production cost information for the forming department follows.
Beginning work in process
Direct materials
Units
34,500
490,000
494,500
30,000
Conversion
Costs added this period
Direct materials
Conversion
Total costs to account for
$ 56,200
22,900
1,800, 200
1, 179,000
Direct
Materials
Percent
Complete
80%
85%
$79,100
2,979,200
$ 3,058, 300
Conversion
Percent
Complete
20%
35%
Consider the following data for the assembly division of Stiles Watches Company:
The assembly division uses the weighted-average method of process costing.
(Click the icon to view the data)
Requirement
Summarise total costs to account for calculate cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed (and transferred out) and to units in
ending work-in-process.
Begin by summarising the total costs to account for. (Complete the necessary drop downs. Fill in the relevant cells with its corresponding figures)
Total
Direct
Materials
Conversion
Costs
Production Costs
Total costs to account for
Data table
Beginning work-in-process (1 May)
Started in May, this year
Completed during May, this year
Ending work-in-process (31 May)
Total costs added during May, this year
(Click the icon to view the equivalent unit computation.)
Physical Units
(Watches)
100
525
480
145
"Degree of completion direct materials, 90%; conversion costs, 40%
Degree…
All the following statements about process costing is correct, EXCEPT:
O a.
Process costing allocates applied manufacturing overhead cost to
product cost.
O b. Process costing uses the manufacturing accounts, including
Manufacturing Overhead, Raw Materials, Work in Process, and
Finished Goods.
O c. All the given answers are correct.
O d. Process costing assigns direct materials cost, direct labor cost, and
manufacturing overhead costs to products to compute product
cost per unit.
O e.
Process costing is normally used by companies which constructs
houses.
Chapter 17 Solutions
EBK HORNGREN'S COST ACCOUNTING
Ch. 17 - Give three examples of industries that use...Ch. 17 - In process costing, why are costs often divided...Ch. 17 - Explain equivalent units. Why are equivalent-unit...Ch. 17 - What problems might arise in estimating the degree...Ch. 17 - Name the five steps in process costing when...Ch. 17 - Name the three inventory methods commonly...Ch. 17 - Describe the distinctive characteristic of...Ch. 17 - Describe the distinctive characteristic of FIFO...Ch. 17 - Prob. 17.9QCh. 17 - Identify a major advantage of the FIFO method for...
Ch. 17 - Identify the main difference between journal...Ch. 17 - The standard-costing method is particularly...Ch. 17 - Why should the accountant distinguish between...Ch. 17 - Transferred-in costs are those costs incurred in...Ch. 17 - Theres no reason for me to get excited about the...Ch. 17 - Assuming beginning work in process is zero, the...Ch. 17 - The following information concerns Westheimer...Ch. 17 - Sepulveda Corporation uses a process costing...Ch. 17 - Penn Manufacturing Corporation uses a...Ch. 17 - Kimberly Manufacturing uses a process-costing...Ch. 17 - Equivalent units, zero beginning inventory....Ch. 17 - Journal entries (continuation of 17-21). Refer to...Ch. 17 - Zero beginning inventory, materials introduced in...Ch. 17 - Weighted-average method, equivalent units. The...Ch. 17 - Weighted-average method, assigning costs...Ch. 17 - FIFO method, equivalent units. Refer to the...Ch. 17 - FIFO method, assigning costs (continuation of...Ch. 17 - Operation costing. The Carter Furniture Company...Ch. 17 - Weighted-average method, assigning costs....Ch. 17 - FIFO method, assigning costs. 1. Do Exercise 17-29...Ch. 17 - Transferred-in costs, weighted-average method....Ch. 17 - Transferred-in costs, FIFO method. Refer to the...Ch. 17 - Operation costing. Egyptian Spa produces two...Ch. 17 - Standard-costing with beginning and ending work in...Ch. 17 - Equivalent units, comprehensive. Louisville Sports...Ch. 17 - Weighted-average method. Hoffman Company...Ch. 17 - Journal entries (continuation of 17-36). Required...Ch. 17 - FIFO method (continuation of 17-36). 1. Do Problem...Ch. 17 - Transferred-in costs, weighted-average method...Ch. 17 - Transferred-in costs, FIFO method (continuation of...Ch. 17 - Weighted-average method. McKnight Handcraft is a...Ch. 17 - FIFO method (continuation of 17-41). 1. Complete...Ch. 17 - Transferred-in costs, weighted-average method....Ch. 17 - Transferred-in costs, FIFO method. Refer to the...Ch. 17 - Standard costing, journal entries. The Warner...Ch. 17 - Multiple processes or operations, costing. The...Ch. 17 - Benchmarking, ethics. Amanda McNall is the...
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